Finmarket Review: The real story
Is Finmarket a scam?
We’ll be addressing that in this review, Finmarket definitely seems to check off a large amount of the scam boxes. However, if they’re officially regulated by the Cyprus Securities and Exchange Commission can they actually be a full blown scam or just a scammy type of operation? This review of Finmarket will answer just that.
Based on the issues that we discuss in this article along with firsthand reports from clients, we will recommend in a serious way NOT to use Finmarket as a broker. If you’ve already deposited your funds with them, read on as we’ll explain how you could get your money back.
If you’re not sure if you’ve been scammed by Finmarket watch this video
Is Finmarket really regulated?
Yes, it would appear from the CySEC website and from the Finmarket homepage that Finmarket is a regulated broker. However as we’ve mentioned before , CySEC has a notorious reputation for allowing extremely questionable business practices within their system of “regulated brokers”. You can see another example of that here.
What is Finmarket?
Finmarket was founded in 2015 and is a trading company or brand belonging to K-DNA Financial Services Ltd. They are one of five approved domains owned by K-DNA. As they state on their website Finmarket provides online Forex and CFD trading services including Commodities and Indices for worldwide investors.
They offer three trading platforms, a web based, desktop based and a mobile platform. They also offer streaming financial news and 24 hour support (or so they say).
Methods of Deposit
Finmarket accepts credit cards (Visa and Mastercard) as well as a slew of other payment options such as Skrill, Maestro, Giropay and Neteller.
A note that can either concern you or give you confidence is that they don’t have a large review presence online. Generally speaking this is a cause for concern. A company that’s been doing business for over four years internationally with no real online feedback is a red flag in our book. Finmarket is also not heavily discussed in many of the most popular online messaging boards.
If you’re not sure about Finmarket, watch this video.
While a review should be objective, in this case unfortunately we’re not. We’ve received countless complaints from Finmarket customers who have reported agressive and outright abusive sales tactics, as well as outright improprieties in regards to how their account was handled and how they were treated.
Deceiving Advertising and questionable Review Practices
Many reports have stated that FinMarket has engaged in CFD manipulation, FinMarket is also known for posting phony reviews. If you do a Google search for “FinMarket review”, the first several links read more like advertising channels than reviews. They spend a lot of time talking about investments, platform features, and potential returns, but they don’t address any of the scam allegations or actual feedback regarding the company for that matter.
We’ve noticed the same trend on user review sites. Almost all of the 4 and 5-star reviews look similar and are written in broken English. That’s a sure sign that Itrader has been using bots or fake accounts in an attempt to boost their overall review ratings.
Many complaints have been received of Finmarket using deceptive advertising tactics. This is common with CySec regulated brokers.
If you are a Finmarket customer and you’d like to get your money back, contact us today for a free consultation.
How does Finmarket get away with scamming people?
So you’ve done your homework, checked and double-checked the online trading company you are planning to trade with. They are a regulated trading company. Maybe this is your first foray into trading. Perhaps you are hoping to make some money trading foreign currency, binary options, contracts for difference or even cryptocurrency. Next, you logged on to the company site, located their trading license number and finally, you checked it on the relevant regulating body’s website (Asic, the SEC, Cysec etc). Maybe you even started educating yourself on how to trade wisely, joined a few forums like babypips and began getting your feet wet so to speak
If they’re regulated it must be safe, or so it would seem
Now, you start trading on the platform and all seems well. Your broker, let us call him John, seems really nice and helpful. He even gives you some helpful trading tips and compliments your performance. This is the first sign that you may be trading on a regulated trading scam. John advises you and appears to be holding your hand each step of the way. Then, suddenly and without warning, the market takes a dip and you are out 10k, 20k, or maybe even more. You feel lost and confused. John gets on the phone with you and offers his condolences. He explains that this is the nature of the game and you could check out of the markets if it isn’t for you.
Something all of sudden comes up
But, he just got a hot tip that the dollar is about to take a beating and if you buy pounds today, you could triple your investment within a week. Even better, if you go in for the equivalent of your previous loss, you can earn back everything you lost and come out ahead by a handsome margin. If this is starting to sound like gambling at a casino, you are dead on. Trading online is a lot like betting at a casino. Even worse, companies like the one we are describing here make their money when their clients lose, just like a casino. But your broker didn’t disclose that, did he? This is how a regulated trading scam works.
The two key ingredients to a regulated Trading Scam
There are two key factors that make a regulated trading scam work. First, they seduce inexperienced investors with empty promises of huge potential winnings. Why inexperienced investors? Because inexperienced investors are all but guaranteed to lose in the long term. All the scammer must do is keep you trading. Eventually, the odds will ensure that you lose and the “house” wins.
Secondly, and perhaps the more devious ingredient in a regulated trading scam is that they deliberately offer bad trading advice. Of course, this is highly illegal but for the scammers, it helps them speed up the process of getting their clients to lose in the markets, so they can cut you lose and move on to their next victim.
So how do regulated trading scams get away with it?
Regulated trading scams make sure not to give any investment advice via email or anything that can be recorded. Therefore, it is all done over the phone. This helps them avoid getting reported to regulators. If someone does report them, they simply deny culpability and the burden of proof lies on the victim.
One other point that is worth discussing is the following: Before a broker allows a new client to trade, they are required by the regulators to provide the client with a written assessment to ensure they are educated enough to trade. Many regulated trading scams skip this step which is an opening for victims to claim their money back. If the above sounds like something that happened to you, please reach out to one of our fund recovery consultants and we will see what we can do to help you. At the minimum, we can help you assess your options and you can then decide how to proceed. Fill out the form here to claim your free consultation.